Economics

Preview | 3 out of 77 Flashcards

The cross elasticity of demand&quest;

The cross elasticity of demand&quest;

&NewLine;&lpar;&percnt; change in demand for product A&rpar;&sol;&lpar;&percnt; change in prince of product B&rpar;&NewLine;&NewLine;how a change in a price of a good will affect the Q demanded of an other goods&quest;&NewLine;&NewLine;positive sign&colon; substitutes &lpar;when the price of one increases&comma; the quantity demanded of the other increases&rpar;&NewLine;&NewLine;negative sign&colon; complements &lpar;when the price of one increases&comma; the quantity demanded of the other decreases&rpar;